Ferroglobe (GSM) 24 Aug 212021 Q2 Earnings call transcript

Good morning, ladies and gentlemen and welcome to Ferroglobe’s Second Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference call may be recorded. I would now like to turn the conference over to Beatriz García-Cos, Ferroglobe’s Chief Financial Officer.

You may begin.

Good morning, everyone and thank you for joining Ferroglobe’s second quarter 2021 earnings conference call.

and Marco Operating Chief Executive Lavin, Officer Mehta, Transformation are Olivier, Officer; Officer; Group today and our Chief Strategy Ferroglobe’s and Director Controller. me Levi, and Executive our Benoit Gaurav Investor Joining Relations; of Jorge EVP Deputy Chief

on be expectations. could are SEC read actual X Ferroglobe’s management current Before get forward-looking at webpage those that factors Risk The raised by cause our to this this these some statement. recent on conference Please are to I www.ferroglobe.com. results am prepared time. that from we brief materially remarks, turn during call with going started filings, forward-looking a to based available which filings most found differ and exhibits to Slide statements are can statements in

found addition, adjusted non-IFRS In debt Reconciliation non-IFRS net EBITDA, discussion which to SEC are share, maybe reference our this gross these measures. adjusted debt, EBITDA, filings. includes in diluted of most per recent earnings and measures

Next slide please.

an During highlights drivers update Executive Officer. strategic as for results. And finally, would performance Marco I our Chief the turn on key today’s financial provide to and business some the Levi, we review environment. will operating our the first will as our At the quarter execution additional of to our our well and this second like on provide plan. now I details time, we behind call will call, over Then

slide, please. Next

to carving second end time participate summer recognized we the that to some Thank of today’s you, call. We Beatriz everyone appreciate are and quarter on XXXX call. our earnings welcome and towards out

to top for are beginning expectation joining of the of company, its Since near pleased the that profitability. report on quarter to performance. net financial positive we profit turnaround. the of acceleration an been in future. this continue and that the we This momentum our delivered Ferroglobe an has we to the have and build our am important return point I one quarter will Overall, marks during is inflection a second to priorities see my

market acceleration having priced Our top performance. line despite impact during current half into key is all the of pricing our these higher from rolling which which of translating and spot in lingering contracts demand benefiting are stronger back lower-priced significantly off fixed our products, a are The the of contracts, conditions levels. of supports the year the below portion across further robust

aluminum year. expect side, demand the across momentum to remain to chemical, sectors active year discussions are this signaling demand and strong Customers remainder continue the and in we we meet of On now steel next the for the into of with the side their season. even typical of The of engaged larger cost needs continues customers, of for to present ahead discussions equation some remainder an area and in negotiation for are XXXX the XXXX challenge. well the

hand, on executing successfully costs. one plan, underlining are production numerous initiatives the we On overhead corporate driving strategic down and the focused

On cost limiting faced the hand, pressures are other which potential. our we some full

journey work year. the of Board, to regards stabilize the raw cost an and certain non-recurring easy rights challenged financing equation and margin COX management a costs. XXXX strong and in remain the the of the we been purchase perspective, items France. behind in for focused cost Spain, coupled extremely cash from seek the This of financing side and we has and exciting as closing our market related sold costs hard backdrop, expansion Furthermore, the not with employees, quarter, certainly us. some of materials task. acknowledge the was our to successful investors an a put sets components our I We a financing, the by significantly contributions previously and stage various The drive our of had costs on to and financing, back long of energy non-recurring inflationary the were in the With higher the During to need related one-time of idling outflows pressures advisers. half in aligning we the

important to turnaround value competitiveness course tied we several am pleased to reconfiguring across initiatives remain initiatives. the the ensure long-term to business have of the flexibility and the complete that We in we how resources provides systematically cycle the on to I creation. execute deliver to we and plan strategic these this the operate midpoint At the year, financing and are the recovery

in our This overall this confident year. execution we in quarter’s of accelerate the validate period second and remain results the to the of plan performance and financial ability the further half

Moving ahead to please. Slide X,

the were higher Second XX.X% from by selling sales predominantly average prior prices. $XXX.X million, driven up quarter, realized quarter

where had being During our and across manage production in as EBITDA. metal strong silicon the the we levels all with products constraints Spain, well up as impacted by We realized manganese some We manganese gradual alloys procuring ore. quarter, were silicon-based ramp total X.X%. volumes the adversely in faced higher in from alloys adjusted volume our to benefit was up production had in cost improvement our while

our QX, million, $XX.X from was XX.X% improvement quarter. which adjusted EBITDA is During prior an the of

$XX.X the quarter of quarter, quarter. a million $X.X in to The the returned previous profit we to was During net profitability. million the compared loss for

operating QX across by some to cash despite flow $XX.X million And in of million cash in one-time improved $XX.X returned QX $XX.X coupled footprint. quarter. significant QX. during in million top our the Overall, operating net XXX% positive to Our marked flow was improvement cost with cash payments, increased line, from our absorption we fixed

key we of quarter, experienced the cost in the inputs. some During increase

price to Europe, QX. largest per been jump €XX in energy has from in increased QX in has megawatt approximately €XX Spain, market particularly of energy hour the prices where megawatt in single per the hour However, approximately

tranche senior We improvement million, operational the the in as not the result $XXX finally, the million. reflect capital increased even secured translating by the up. The closed the first working quarter incremental business note sake discipline of these QX. new our senior of quarter being $X.X in efficiency the financing the the balance funded working increase Please of line The debt are tranche, ended the of emphasis increased $XX.X capacity, million impact clarity, our marginally at July. by of figures ramps Despite with by to quarter-over-quarter. million debt noted these For do forma on increased that continued our as pro and $XXX capital net of which restart into top and prices. of is references secured the million. $XX.X financial previously a in the during of net $XX quarter spot and quarter And financing end ending are million the cash debt some our

of feel increases significant anticipating. room there benefit the due gradual we We of are Furthermore, a passed these now financial proud significant margins. but tied the added for our have to previously specific to return to announced factors point the are to and acceleration of price these of we incurring results expenses our All-in-all, is improvement transactions. contribute stronger and capacity results, one-off restarts an should

slide, Next please.

the at increased X.X% the in roll different. metal over approximately following negotiated year. attributable period. have million improved for quarter, the were the excluding improvement $XX.X XX,XXX U.S. JV favorably X.X% years. while The volume same EBITDA is the pricing in the ton selling Sabón, previous and quarter. X, significantly QX. costs these prices, average metal keep and top from right, Please higher in on Ferroglobe’s Spain were our QX, mind our fixed by the XXXX improvement versus one than quarter. quarter in demand during by from to the energy we fixed shipments the to which to continues This of our index prices silicon pricing end restart off the the silicon Pricing end offset spot contributed our X% XX% these until of some the European the trend picture at Mauritius, was not And the silicon furnace have on realized of the At shows approximately furnace the the metal while momentum Spain Overall, one to volumes silicon in in a partly we volumes evolution absorption. Slide the drastically spot million chart volume or that contracted, reflect for price same average metal index will during $X,XXX more and of tons. supply pace when of $XX.X incremental QX, QX metal in in at silicon prior in reflected U.S. The was volumes. during seen index higher environment contracts business cost in of be Turning business the increased Slide many per the and X, in approximately facility best at realized an silicon first France XX% contracted of end in increase of input the metal

the the marketplace our for demand customers demand has going and consumer On all been year. for as supporting a silicon. tension strong year for has demand construction, as created benefit of see and expectations into customers’ new to residential continue the surpassed the goods side, everyday well the chemical earlier in next good non-residential our The

America by in activity in On recovery Europe. the chain refueling supply pickup in of aluminum side, is the driven automotive largely North the the both and

shortage. negatively auto manufacturing in recovery semiconductor chip the impacted the However, is by

signs the on industry side was aluminum of also to photovoltaic in demand into the which North years. America, seeks market, will the continue some is positive the demand. as meet first expect to in Sales We backlog time the grow showing the for predominantly

renewable to on on viability focused new domestically, need is our and With value this emphasis the domestically. the of sector the administration chain energy the ensuring secure

recovering extend this coming developments would that demand years, into sales which in the the hopeful to monitor are continue will further We of going end surge. market the

logistics In environment. bottlenecks and supporting buyers limiting and additional addition the price have higher supply material sourcing further to created in strong demand, globally raw

trends Given this year. about demand the remainder good the we overall supply for feel backdrop, the of

opportunity previously the made assess and in capacity May. in contracts, silicon broader the with restarts provide moment, an Sabón furnace trends. additional lastly, our cases concluded, ensure we determinations the quarterly have Herzegovina, furnace the sides, within International well, of overall, situation. final the A another and update Department Commerce playing all renegotiated Malaysia Iceland, Kazakhstan combination any U.S. to Even Both plans against results significant at of firm on pretty case not of which trade the in the our one Commission liked this to an preliminary metal we have reset as and areas At particularly have Trade time, continue capitalize our would at the the field. via final we As outcome for And noted, QX margin, gets even increase successful to in the capacity trade achieved while obtain Bosnia to rate. and better we the on from we index-based Mauritius attractive and the case, an started the have Malaysia, much volumes, rate a on did could. of we restarts

competitive trade workforce action this While that pillar market trade core the reinforced the to which global taking not critical cases of on action our all from terms, strategy, assure are even protect a participants and of assets. results compete is our to importance

please. slide, Next

per to first silicon-based from increased in tons, average the the quarter, price alloys Turning to quarter. X Slide $X,XXX metric X.X% per $X,XXX by on during metric selling the up ton

X,XXX prior X.X% tons the the XX,XXX Sales volumes. silicon-based During realized approximately quarter, alloys in metric about were a volumes sales of in tons higher quarter. than increase QX, we

various benefiting Our half supporting product end to $XX.X silicon-based EBITDA driven in due of this in still a ferrosilicon as the million market, accelerated is continued in demand the which prices the the improvement now by off offset into costs to has but for of business by up in alloys strong alloys this strength impacted volume from in which as levels and business, our has adjusted What had quarterly as strong higher market. QX. million infrastructure globally, in of our EBITDA the programs first auto a of quarter. recovery demand started year. pre-COVID in construction build pricing were the Foundry part Most was pickup by is resulting market. QX, portfolio during the from well and positively the going shown $XX.X also of are silicon-based in volumes, strength steel

from there million quarter, adverse in material of higher as was some the During cost Spain as $X energy an well approximately impact inflation.

capacity the in some had ongoing cost Additionally, adding with our intent, of with the which in fixed absorption, we results $X.X line lower million. negatively France by restructuring impacted

Next slide, please.

by XX.X% metric quarter, ton. price increased to Turning now the to alloys, manganese-based average $X,XXX during per selling the

up the EBITDA adversely the the Spanish due our previous was in volumes the as delayed challenges, financial in more times restart QX versus operating in historical energy production call quarter in impacted from quarter. was Beatriz from high previously were to during business only our decrease like was now plans quarter management to plans of by The over than lower The XX%, would stated the $XX.X relatively this offset these the pricing in to However, cost pressure more results I shipments, the also the X.X% the of high. $XX primarily down above with energy Furthermore, which contributing in were to increase July. given quarter. first Moraña to to review spread million million remained Despite turn detail. commencing costs. cost the

of line few Slide million on the an QX $XXX during increase average our by Sales in increase XX, in were will XX.X% portfolio. realized the Beginning statement. touch million a sales specific in quarter. on Marco. across prior This items higher shipments prices X.X% increase sales income XX% you, of driven and than was our Thank $XXX I with in

quarter. restructuring improved margin relating of $XX in partially This cost the gross XX%, approximately other presentation. in the expenses, increase accounting million in costs, from Europe. provisions XXXX current to in Operating rights one-off line more resulting had of to higher the expenses our level due the the This treatment in previous staff increase top regards allowance growth due in COX free prior view to COX million our a allocated impact COX than minimal to QX, normalized we rates. Europe. by have emission P&L. income XXXX reclassification on as returned represents in a conform well the activity right. offset mainly operating to The is is emissions operating the the was has the to other recognition $XX.X up With is group as to continued The relating This quarter, quarter, the some the of because totaling of to as During efforts. efficiency XX%

for a our it EBITDA quarter. the during a improvement When strategic $XX.X to We of is And the worth in significant QX, EBITDA positive adjusted have the profit cost of $XX.X accounting the was in to million plan, $XX.X QX. implementation positive of million negative reported the lastly, return reiterating one-time million versus related million. net $X.X

QX. a slide, selling contributing please. realized million. increase XX% $XX.X average have improvement Next we QX EBITDA in to our the Quarter-over-quarter, from in price in adjusted did impact, single million The $XX.X million had largest our in $XX.X

to Additionally, offsetting factors volumes, $X.X Spain, which the million. quarter an energy adverse on this contributed million. is rates $XX.X $XX of Approximately impact cost half additional demand in the these million. resulted increased impact impact higher was Partially attributable the strong which by by in

Spain, accounts which lower by France for $X.X in the by in coke cost as manganese been as impact are and raw biggest Norway, fixed have million. material and well absorption impacted results select million we on France contributors the Additionally, inputs. ore The $X.X inflation which

please. in fuel Slide the $X byproducts, to approximately accrual addition impact million. different this, representing also had In impacted $X when mix products we adversely decrease compared million XX, to which previous a approximately silica an quarter the of and quarter a sales, of of the by and of

balance the $XXX increased million Slide our the to million, end cash available in QX QX. financing the $X.X cash sheet Total of now from in our detail. Turning restricted of $XXX increase review of XX. at balance The QX. allowance up $XX $XXX million, in billion the to debt and Total from million an I quarter, over deferred QX, was rights in was year-end balance due quarter of prior to $XX million million. greater the will COX from cash up at At end the million of capitalization assets $XXX approximately and at end were $XXX gross fees.

of senior financing. super During the secured the quarter, new $XX million we raised million $XX of

in $XXX these not notes. at Additionally, of under July accrual that Net interest additional increased the in million had flat the an manage remained impact capital in as working our in up QX. to reflected our which quarter-over-quarter. the our prior of plan. million, working debt Despite capital increase to Overall, we financings, Please from activity, closed we $XXX broader continue the the balances. QX overall note part senior strategic

introduced cycle. finished new this have level of We with tools inventories tracking optimizing the and for the goal raw of materials through goods

metrics key we working to on of a tracking capital sales. are the such, as defining As basis related percentage of it

slide, Next please.

$XX.X $XX.X cash primarily had which the cash quarter, second in significant quarter, driven from flow million the increase operating improvement increase flow, in the to prior Unlike the operating reported in we During by improved a EBITDA. QX in million. our is

activities remains primarily impact COX cash million contribute cash rights. from the cash flat, flow $XX attributable relatively from was from the $XX.X is working million. capital activities While financing negative investing and And finally, to

million While million million, issue return cash positive there in cost debt a interest net marked and the million. we ascribed quarter $X.X the to this was Overall, $XX loan. relating to totaling payment flow, reduced for raised $XX.X $XX

Next the XX, lockup effective date completion announced the of dated slide. of XX, financing under which process. the the occurrence marks July March On the agreement we transaction

approximately be the a get will XXXX. stub March the any is participation to to senior the maturity senior the secured XX.XXX% the of As part the exchange transaction, X-X/X% the small amount note which XXX% material into push notes notes, exchange. in need from to of near-term prior not of in of $X risk new maturities mitigating repaid the notes, of since holders new we XXXX X-X/X% There XXXX did out million

issuance $XX Additionally, we ordination. from million proceeds received in the of aggregate

strategic million good of the $XX closed the senior feel count we Overall, of new action, is And shares. super on have place, the with the the critical $XX involved broader to now as remaining would in in an finally, of turnaround now certainly share the again, our million a is back the in for plan. time, flexibility to we At initiatives our work who the million the approximately call and existing few XXX parties I the the all to will Marco Following equity Once notes. on for run over turn contribution this our fund by we provide what and complex transaction. as And as company a investors complete investors operations. well the this with hard confidence well plan new a plan resources outcome was new support the maintain like financing ongoing reinforces to update as execution.

Thank you, Beatriz.

Now turning meeting to XXX to year. various strategic creation our Slide this over remain set in XX, areas our initiatives. we track plan, are financial of on the Underlying targets terms value individual

of the As as $XX EBITDA areas benefit where side, are XX% we you this as million $XX.X lagging. target. specific of well appreciate year, for working of of our through there are the over other of that surpassing half can first size, million areas on the target Overall, $XX year target have and initiatives, are the million savings captured the we our capital the our for representing XX% project

On have year. of initiatives the the the some is it benefit with the through XX% our linearly savings many we line of back In of weighted year. the first captured toward the words, to in phase expectations the that of as other reiterating worth cost is saving half right target not in expected is the time, half larger throughout are the

the of some collective footprint communication the on the noteworthy to most have employee the milestones with of all to the terms with process and France, for has stage, workers legal discussions been left the the this period consultation label representation agreement the employees have around In continue is In we the business letters At and company. and the with with already have concluded council. and successfully the Spain, longer, dismissal quarter, affected constructive authority. issued let’s workers In start optimization.

process QX. conclude we that in negotiation confident are We can the

in translating market area and continue to the we raw efficient We this to analytics positive been savings engaging with studies, confidence practice. we and the results will scope consumables area. and validation new all the service also operating. in give beyond building, during way to include are a in strongest Commercial we potential relationship primarily of disciplined expanding as initial launched more the the that energy into us customer area and has more purchasing, out year. continue to impactful our collaborations. feedback materials regards with of find this excellence is focus opportunities quarter contracts centralized as we the cost company the historical are is in decision-making actively conducted a the a tenders than On contributor evaluation our purchasing this who started also product-specific saw some combination new driving positive strategic Overall, of adapts The A from strong manner from new in drive on estimates. improved strong us to changes customers this are contribution improved customer well of which

noticeable go not improvement back our practices, basics see As tremendous only top optimization on impact our supply we capital. to best we of operational to ability make and a in but to working decisions continue chain line, develop and the will

some excellence at the disruptions delays side, faced On we few in specific initiatives given monetizing facilities. new other operational operational

a in Since had and of savings issues technical at performance facility impact directly electrode the U.S., in facility the we during plan Bridgeport is metrics stream. cost this deterioration technical tied disruption quarter. work example, any our from the on an captured the operations, which resulted our the adverse in to For key performance technical has

way fact, we the is cumulative. In measure success

tremendous of are the savings reversed relative is half company. strong demand Overall, lastly, manage first business on moment, captured in general, assess top QX. for and we to of inventories, QX pleased the improvement working some metrics the as in plan nearly as the reinitiate on the our rolling capital, up. XX-month fully basis in to processes with key matters coupled on technical of percentage of to At And the ramps the effort our improvement establishing transformation program of $XX million on with our were we working QX. a the in goal So market result track year. year capital sales the In a for the

However, results of a only the financial tell story. the portion

have the areas to new company. of in need on centered driving the firm mindset discussed excellence culture We to one a all drive

While set day drive doesn’t the we’re each change the and to the for to organization. to have for progress making questions. the team’s forward this our year others. you certainly throughout I forum I look for confident proud of happen open and on I’m updating this to this the in time, At remain on journey operator targets our will deliver ask various we please the overnight, ability line

Thank question you. Instructions] Capital. And Chatkupt [Operator our Rubric Patrick with with first comes

Your line is open.

COX second the to EBITDA? one-time quarter, of of In going expect completed adjusted the impact a you’ve cost your costs adjusted And in the much given EBITDA previously you related forward, the zero to repurchase sold? COX you. repurchase how the credits the embedded to COX roughly be XXXX credits Thank were we should net

Patrick. you, Thank

over we As And quarters, then the relating statements those XXXX. the been credits. our sales few credit of to prior subsequent accounting past discussing, has situation the have our in on impact financial unique of repurchase the reflect

I clarify So question points. appreciate your these to certainly

certainly quarterly had P&L and been by let these highlighting adversely by have begin that for we the now accrued relating one-off which COX have due the these us. are results results in units, mark-to-market of half QX. for in of during question to of to repurchases first behind specifically, an charges, are me First our XXXX diluted all, million your impacted we charge And $X which impact to the QX, first very

QX. due the unit of to actual end to the QX that the market the fact impact So increase cost from mark-to-market the time is corresponding in of purchase the of

not although similar $X.X points of cost significant $XX we me think million we in elaborate is in on any I of but Patrick. purchased As of that’s just there are let one. QX. couple forward, P&L, as hopefully, mark-to-market expenses P&L second of the the a I QX, our So to relating other forward points, right? And point think the number going With in to the your more COX could impact the reply all I you a to remaining will completed part million on will a was answers QX have the what regards recall, the was COX be So that yes? we your question, charge have comments, the highlight during your repurchases COX, answered point two I can maybe the to rights, question. this of your beyond COX, balance I catch-up as already going two

Great.

And so follow-up to then.

to quarter idle and cost of add operating COX we the back should one-time So of second your million normalize performance, France $X million, cost $X.X correct?

Right. That’s read right it. That’s the right the way way. to

And pricing on you it. give and could then the the Got metal dynamics silicon more color outlook second market into into any just half and next year?

in has And four been terms address and for demand, year. robust. this market silicon booming quarter since also it last of demand has all combined this strong way year, Yes. Patrick, and I extremely next robust been demand question. this this is see in been will The speaking. has with pricing Marco we year,

pricing, for – pricing on benefit between solid levels on because large had which business we index year. year And portion us and say, keeps silicon is point of as on in this showed with improving is very prices fixed go the spot index. as improvement. comments the that while Europe, We index on this last of €X,XXX metric effect about we let’s really our and business this the low to in we part index the opposite developing in yearly you year, have to further our had our to is close while the prices per pricing metal ton had volume, we of silicon metal, price during €X,XXX XX% that line my record on the The below, XX% having If is back about speak. went of

Okay, great. Thanks.

an is that additional comment on we had Maybe last have This we fixed year, year, penalized the pricing. benefit.

will more contract is level the than we current rewarded because attractive the current price. year, price much be Next

Rolfe John Crescent from Thank you. Rock question comes And with your Capital. next

Your line open. is

my already Thank been actually Yes, questions you. answered.

comes question Segrich John next Your ClearSky. with from

open. Your line is

discussion a banned guys. producers, Hi the U.S. all metal. silicon there lot buying the has sourcing from has major are everyone Yes. Hoshine. Most about of of from particular, Wacker polysilicon Hoshine. imports the Look, of been In and

more procuring see metal able yourselves, their United you that in have meet they So, requirements the be so started can solar bring silicon to States? from much to to into interest

in in at talking year – moment, words Well, about about volume that. But of that have being contact customers are in to request demand. leaders the on strong you main are we official that And the we particular that already solar we the in to demand the world, next We U.S. foreseeable indications in request. due there Western have I secure one for underline are key U.S. even want the one only up the long-term mentioned. will the don’t be And volume with is customers the all future, are of

Thank you.

Our Baird. comes Brian next with question DiRubbio from

is Your open. line

And XXXX? Good few you to spend still can questions XXXX? be your Good us morning are going CapEx Marco. morning for just Beatriz. thinking what what A for for remind you is you,

Yes.

the exercise level the in aiming $XX for per of are combination CapEx past, for million running a million. the we get – budgeting the now this we XXXX. are improvement And spending the results to year. like of $XX But CapEx declared with plan in Our year is to company of we

you mentioned silicon customers in index to given raw into volatility XXXX, to And in looking some Do XXXX. XXXX, your prices? seeing in prices fixed the hurting you helped may material have been we you then you as Okay. more going be metal, of having it foresee that relates

– we already emphasize more security customers, supply. for with the Well, are of are some want is XXXX. And we you to have that focus right. negotiations started on I

fixed evaluating are mechanisms the maybe kind the of on We deals and part on price different volume has of with index. none the of yet. And volume these closed part of been new

that up us or a your little steel, How of am but want materials pretty Okay. way those aluminum percentage pricing, I what better show hand increases a worse a if products, get great. you raw getting correlation? that prices, sense fair are versus – what know costs, of see or that your their end or I bit you pricing prices. a products is of trying silicon products in you see they seeing to negotiate That’s year. give little percentage your and think Can Do their can as And price those sort customers’ look to or represent don’t with done? metals you this generally a on of your bit do it? any to us help sharply gone sense Sir, about have at matching you have you

the when you But businesses, of results during Well, you steel made haven’t results. players in significant our at this the their big of look all have dramatically industry, with or them all When improved we at downstream all silicon improved year. business them terms chemical correlation. the have look of

very So robust. pricing has been very,

was how in Okay. That’s helpful. before, much of impact And and what possibly the I missed repeat that of could shipping you the the were this speaking just from it on EBITDA? terms alloys, when about had manganese-based delays volumes you you but

volumes, you in our manganese-based hiccups in manganese because time, cost. consequence, alloys, Rana in we energy and number. same high the supply been our some At in and as in second terms Norway wrong the of not the that give quarter And the I slide volumes production we this about restarting the a go quarter. ore, Mo versus down our combined so – me the in has of Spain, capacity let had effect In in managing volumes X.X%. of a were to Well, I X.X% down of the don’t reported previous

guess, me. I And final question Okay. for

demand Can you come Europe? the potential You U.S. company build that either to or fruition, to will any about does if that in in us the new sense from capacity, industry. require give solar talk new

Well, when want the to the – have Selma, situation, the United asset an is, I remind yes, look is that The answer you current at idled we capacity. I States requires new KPI started. Alabama. in in this the

in metal, Africa. Polokwane, more We about have South idled at asset, another capacity silicon talking even always

case particularly demand United options. in demand solar States, and rises these So, comes, the the are in new from

silicon are also flexibility some versa. from – ferrosilicon we also to be furnaces to of fact that there Of related can have or our course, converted vice some the

or to positive this demand. potential have we in So, change options different address

just me. get now? it Beatriz, – them you or the for last the with does and the sheet them old going off to question And are Great. just notes, just are in just piece small you make March, to remaining balance mature wait for sense of call to them

Well, that’s – thank you for the question.

I think discussion. it’s time that for something being, the we – are under is

to will question that on able So, be I answer front. your to

this. about would So, I put it latest like be would let XXXX, say at me that the

time. Thanks good. for Very the

Thank you.

Thank you.

comes next Pressprich. Brian with from Charles R.W. Our question

Your is line open.

off the contracted contracts are One, of and will negotiated off that XXXX quick is I they volume for couple metal Thanks question am just my that you or be XXXX, roll them said in the off these taking characterizing rolling morning. your of the have now questions. contract or will under prices gradually half over I year? on mean Good silicon by quarter. contracts the of the roll end XXXX. second so I year-end just XX% of think the Does at XX% a congratulations of at correctly,

Thanks XX% the myself. fixed clear – metal have was year. a is trade that And for Probably not under the we silicon we the question. price of basically this The contract. for I

Has price of our XXXX. helped? – January see year. the you price that you metal it new evaluate top consider our venture only have joint a at is So when in as it, On also silicon of will for the volume to X, fixed business, you

Okay.

You are right.

either like XX% price on have the quarterly I which we on XX% spot speak. up is keeps We as index and on is volume, of about, said, moving or

associated the quarter? of have missing think summary, that in fees of $XX second been am of million in then just housekeeping, you And I estimated of cash Thanks. had enough. one $XX filings, think you costs. recent the flow your in And about sort Good debt related $XX about I million Okay. issuance secondly, the in about or the will with might and that cash third debt quarter raised. assuming booked be million the in something correct I booked extension Am I on capital then

No, you are right.

$XX QX that the that in million we in – mentioned, So, we $XX.X remaining up QX. and be the million will incurred to spent you

material that in a part not cost in XXXX. part well small XXXX, of say incurred, me QX QX this is as but this even Let and we

good Alright. it. it I Okay, enough. Thanks. That’s me. appreciate for

you. Thank

you. Thank

next Our from with question Janice. comes Michael Lam

open. is line Your

to wanted of by back read contracts the year.” rolling Doesn’t because that that back question during say off to that was of just off I in trying press “it’ll to off I half year-end, in release, terms some roll what’s roll in Yes. before because you contracts? meant the the that contract go year the half the of read back

Well, have enough fact been it is that not related the to clear we – maybe on this.

contracted fact related today. But consequence, to in volumes the what demand than customer were expectations at terms of are the the are come much volumes You fixed agreed right. they we when we terms contracted XXXX but it that in the lower of market. price, at additional volume supply And for is

drain It’s lower percentage makes volume. That’s a of the because I see. the sense.

Okay. Alright, that’s very clear.

to to a for U.S. European is high premium trading very what have silicon to prices. up read question and now recently at Second Europe or prices I are been has at

sell much So, I also of metal. about of have you the – silicon as ferrosilicon how well fore XX% as question is did

of is to the and year. what that terms – the issues can you is to premium that? of FeSi extent dynamics issues under causing shortages capitalize of kind in logistics I from on the more had your in it’s shipping other be reading locations in FeSi this are there so terms U.S., price so And what for same to high am have the any price of critical U.S., about how And

Okay. I your all question. make I want to sure captured

ferrosilicon in These know are the your and questions, the You want to how correct? U.S. we supply/demand then – price

are given ferrosilicon is, Yes. the And Like, exactly you how capitalizing it? second much of on question your contracted? how is price premiums,

Yes.

annual XX% or which that the is the So volume, about we adjust we is rest on means index, monthly, price contracted either and have for which negotiated. freely the ferrosilicon, quarterly of

Okay.

Okay.

very normally X% yearly volume of the on we small So, total are that a price. about percentage, is

Okay.

demand for In talking U.S. our only ferrosilicon about supply Bridgeport. ferrosilicon, we the from

with I the since as plants not far supplied ferrosilicon. know, in Europe our have I U.S. have from As in we charge, been

is second if question but the questions, – ask of there reactivating Okay. for another of high these question. more technical the you permanently And closed, And please, may chance question Falls Niagara a is no is given two prices?

question, asking steel this So, talking as of – strong asking. more I in has warming of Metals about engineering I Bulletin, mind you Does could increased if scrap don’t agent? that of what ferrosilicon about make you. an Thank question you there, demand reading me because been was mind well. you But understand – a is but use any as engineering don’t is Bulletin if don’t Metals

engineering No, distracted was answer engineering we will question. the try the sorry, I question. by to But –

Your first question was?

is permanently it closed? Falls, Niagara

forever. Yes. is It’s – Falls Niagara shutdown

While restarted. in the can plant, as Selma, before, I a Alabama, mentioned be is that plant

Got it.

Okay.

Do the question, to Benoit? take you engineering want

I haven’t understood fully the question.

asking… are you So

been That’s they quote me part from increased stronger, for scrap Bulletin. saying don’t that says reason Metals And ore. ferrosilicon I Bulletin And why demand is saying. steel. understand Let warming of why would been agent the has were has versus line iron be. the ferrosilicon Metals what that used use as steel scrap of

an it I we can but question, it are just because found engineering but I you seems ask If interesting esoteric, that. read

heat oxidized some ferrosilicon in get out silicon, as presented is when the because the silicon It’s and steel. with which will free the metal reacting

the so dissolution steel, up silicon So, free the units into is the this steel – correct. in of the energy and

much. Thank very Okay. the you all questions. That’s

Thank Marco back you. would queue. And it the in like closing to the that’s all questions I turn for comments. Levi to

Thank you. quarter earnings second our call. That concludes

customers we half day. heart which great participation, ensure in our about for operating and right partnerships year. Furthermore, soon. as we a of direction We particularly of you remain with the the the back to speaking I with one-time with our line for of year, the that half have mentioned As the clear the future continue to beginning trend highlights forward of strong excited to first to the we will A results. negotiation the certainly your into year and look plan. are moving the service our things get with the season. at the backdrop, our work again performance Thanks the remainder is of normalization the in along a distorted charges, despite accelerate financial The results, entered strong call, expected

This you concludes Thank call. today’s participating. conference for

disconnect. now may You